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In choosing not to minimize suffering, God offers a chance for people to show courage and endurance, and offers other people a chance to show compassion and care. (Nearly everyone gets a chance to be in both groups at various times.) If courage, endurance, compassion, and care are valuable things, as I would argue they are, then a world in which they can be displayed is better, at least in that respect, than one in which they cannot.
I find your argument flawed. If suffering were reduced, say perhaps by eliminating malaria, that would not deny people the chance to show compassion and care. A world with reduced suffering, in which people can still demonstrate positive qualities, would be better, at least in respect to the human condition.